Crude oil futures saw an uptick on Monday morning as markets responded positively to news that the United States had successfully avoided a potential government shutdown over the weekend.
As of 9:57 AM, March Brent crude futures stood at $72.93, marking a 0.51% increase, while February West Texas Intermediate (WTI) futures were at $69.86, up by 0.58%.
In India, January crude oil futures on the Multi Commodity Exchange (MCX) were trading at ₹5,961, a 0.39% rise from the previous session’s close of ₹5,938. February crude oil futures also saw a gain, trading at ₹5,954, up 0.51% from ₹5,924.
The US had faced growing fears of a government shutdown after President-elect Donald Trump criticized a funding bill and proposed an alternative that included raising the debt limit. However, Congress passed a spending bill late on Saturday, averting the shutdown and ensuring government funding through March. US President Joe Biden approved the legislation shortly thereafter.
A potential shutdown had sparked concerns over disruptions to travel during the busy holiday season, which could have in turn dampened demand for crude oil and other commodities.
Meanwhile, the latest data on the US Personal Consumption Expenditures (PCE) price index, a key inflation gauge for the Federal Reserve, showed a lower-than-expected rise for November. This development fueled expectations of interest rate cuts in 2025, potentially boosting demand for commodities like crude oil.
Adding to market uncertainties, concerns emerged about a potential trade conflict between the US and the European Union. President-elect Trump warned of tariffs on the EU if it did not significantly increase its purchases of US oil and gas.
In other commodity markets, January natural gas futures on MCX were up by 2.54%, trading at ₹298.50, compared to the previous close of ₹291.10.
On the National Commodities and Derivatives Exchange (NCDEX), January jeera futures rose by 0.54%, trading at ₹24,100, while January guarseed futures increased by 0.21%, reaching ₹5,283.
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